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Why Boston Scientific (BSX) Outpaced the Stock Market Today

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Boston Scientific (BSX - Free Report) ended the recent trading session at $84.49, demonstrating a +0.42% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.01%. Meanwhile, the Dow gained 0.09%, and the Nasdaq, a tech-heavy index, added 0.08%.

The medical device manufacturer's shares have seen an increase of 3.7% over the last month, surpassing the Medical sector's loss of 3.6% and the S&P 500's gain of 1.21%.

Investors will be eagerly watching for the performance of Boston Scientific in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.58, showcasing a 16% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $4.03 billion, up 14.36% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $2.40 per share and a revenue of $16.26 billion, demonstrating changes of +17.07% and +14.22%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for Boston Scientific. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.07% higher. Boston Scientific is holding a Zacks Rank of #2 (Buy) right now.

With respect to valuation, Boston Scientific is currently being traded at a Forward P/E ratio of 35.05. Its industry sports an average Forward P/E of 24.52, so one might conclude that Boston Scientific is trading at a premium comparatively.

We can additionally observe that BSX currently boasts a PEG ratio of 2.79. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Medical - Products industry had an average PEG ratio of 2.

The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 50, which puts it in the top 20% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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